Captive insurance is an alternative to commercial insurance that has grown in popularity in recent years. It offers an array of benefits for companies wishing to protect themselves financially, tailor insurance coverage to their actual risk profiles, exercise greater management over the costs and retain profits. There are different types of captives, catering to different client and risk profiles (such as pure, group, and segregated rent-a-cell captives). Captive insurance is available for most lines of business insurance, including property and casualty, life and health errors and omissions and professional liability, general liability, workers’ compensation and employers’ liability, business interruption and excess umbrella, among others.
It is always important to ensure that the compliance principles of risk transfer, risk distribution, risk diversification and economic substance be observed.
Jonathan S. Berck advises clients in the establishment of captive insurance companies for insurance or reinsurance with the aim of self-insuring in a tax-efficient manner or to write coverage that commercial insurers don’t offer at competitive prices. He has experience navigating the regulatory and corporate processes to establish and maintain captive insurance companies in various domiciles.
Jon works with other captive insurance professionals, such as captive managers, reinsurers, actuaries, accountants and other advisors to evaluate opportunities and present a comprehensive solution for the client’s needs.